Why August jobs report keeps Fed on track for 25 basis point rate cut
Published On Sep 6, 2024, 1:30 PM
The latest jobs report for August suggests a moderation in the labor market, which keeps the Federal Reserve on track for a potential 25 basis point rate cut. The data shows slower job growth, hinting at a cooling economic activity. As the Fed continues to navigate inflation concerns and economic performance, this trend may lead them to further lower rates to support economic growth.
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Investors should keep a close eye on interest rate-sensitive sectors such as real estate and utilities, which typically benefit from lower borrowing costs. The anticipated rate cut could lead to increased investment in these sectors as financing becomes cheaper.
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